FRAMINGHAM, Mass. — (BUSINESS WIRE) — July 10, 2013 —
Worldwide PC shipments totaled 75.6 million units in the second quarter
of 2013 (2Q13), down -11.4% compared to the same quarter in 2012 but
slightly better than expected, according to the International Data
Corporation (
IDC)
Worldwide
Quarterly PC Tracker. Total shipments were effectively right on
forecasts of 75.4 million and growth of -11.7%, although Europe, Middle
East, and Africa (EMEA) and Asia/Pacific (excluding Japan)(APeJ) were a
few points below expectations with the difference made up in the United
States.

The numbers reflect a market that is still struggling with the
transition to touch-based systems running Windows 8 as well as
justifying ultrabook prices in the face of economic pressures and
competition from tablets and other devices. A silver lining is that a
number of vendors and regions seemed to be focused on inventory
reduction during the second quarter, which could reflect planned
launches of new models as well as lower inventory going into the second
half of the year. However, it also reflects some caution among vendors
and the channels in the face of remaining challenges for PCs and more
than a year of declining shipments.

"With second quarter growth so close to forecast, we are still looking
for some improvement in growth during the second half of the year," said
Jay
Chou, Senior Analyst, IDC Worldwide PC Tracker. "Slower growth in
Europe and China reflect the risks, while the improved U.S. outlook
reflects potential improvement. Still, the weakness in emerging markets
is a threat to a core long-term growth area. In addition, while efforts
by the PC ecosystem to bring down price points and embrace touch
computing should make PCs more attractive, a lot still needs to be done
in launching attractive products and addressing competition from devices
like tablets."

One positive sign is that HP and Dell saw growth improve over recent
quarters, possibly indicating stronger performance in coming quarters
and reflecting more commercial replacements as we get closer to the end
of Windows XP support. Market leader Lenovo also grew faster than the
market (as well as faster than HP and Dell) although Lenovo growth
slipped below zero at -1.4% and was down from prior quarters. Slow
growth for Lenovo reflects the company's focus on China, which
represents over 50% of Lenovo shipments, and where short-term economic
and inventory hurdles cut into 2Q13 shipments.

"The U.S. market is beginning to reflect some of the Windows XP to
Windows 7 transition we've been expecting in the commercial PC space, as
evidenced by the strong growth in the enterprise-focused Dell PC
business," said
Bob
O'Donnell, Program Vice President, Clients and Displays. "We're also
starting to see more stabilization in shipments, which we think is a
reflection of PC lifetimes finally starting to even out after a long
period of gradual increase. The end result should be more PC
replacements, even if consumers and companies are selective in making
replacements and wait until PCs are older before replacing them."

Regional Highlights

United States – Posting a decline in shipments of just -1.9% was
a substantial improvement from double-digit declines in three of the
past four quarters. While positive, this recovery was enabled by lower
volume in 2Q12 and supported by a marked reduction in old inventory that
enabled a more aggressive channel uptake. Additionally, wider selections
of Windows 8 models offered by top vendors and migration from Window XP
to Win7 helped to push volume higher than anticipated. Dell managed to
climb above 3.8 million units for the first time since 2011, gaining a
few points of share in the U.S. PC market. HP maintained its leadership
position, growing roughly even with the market. These two vendors
represented nearly 50% of total U.S. PC shipments in 2Q13.

EMEA – The PC market in EMEA maintained negative trends as
expected in the second quarter. Shipments remained constrained amid
continued weakness in consumer demand, while softness persisted in the
commercial market, as anticipated, due to unfavorable economic
conditions and lack of major renewals. Portable PC shipments contracted
the most, impacted by slow demand, which continued to focus on tablets,
while high inventory levels inhibited sell-in during the first two
months of the quarter leading vendors to focus on stock depletion. June
did not bring much boost in sell-in levels, as high inventory persisted
in some countries, while orders from retailers remained cautious ahead
of an uncertain outlook for the back-to-school period. As a result, the
traditionally stronger June replenishment did not occur, and vendors and
channel players remained focused on tighter inventory control instead.

Japan – Although the market continued to shrink and consumer
sentiment remained weak, market growth came in as expected.

Asia/Pacific (excluding Japan) – Although countries outside of
China were fairly in line with forecasts, with India maintaining an
encouraging trajectory, overall PC shipments in the region fell slightly
below forecast due to China. Weak sell-in to China during April and May
constrained shipments. Although June shipments in China improved,
expectations for the third quarter are being lowered to reflect
remaining inventory as well as economic pressures.